Stock Of The Day

SGL, the largest organised player of East India is expanding network by deepening presence in existing locations and tapping new geographies. Jewellery market shift toward organised segment owing to growing consumer preference and regulatory tailwinds would aid in growth momentum. Foray into lifestyle and fashion accessories compliments the core jewellery business and would be an additional growth trigger.

Prudent’s stock has plummeted more than 40% from its peak price

Prudent is the second largest MF distributor after NJ India among the non-banks in terms of commission earned in FY24. If we consider the entire universe of MF distributors including banks, Prudent is the fourth largest. Being a mutual fund distributor, Prudent has benefitted from the robust growth seen in the MF industry. Prudent draws over 80% of its revenue through distribution of mutual funds. Prudent’s revenues and net profit have grown by CAGR (compounded annual growth rate) of 29% and 46% respectively over the past 5 years (FY19-24). The net profit growth has been on the back of rise in AUM (asset under management) to Rs 106,271 crore as at end December’24. Along with healthy inflows, the growth in AUM was led by marked to market (M2M) gains as markets witnessed a strong broad-based rally. Strong earnings visibility, asset light business model with recurring/annuity kind of revenue stream, high operating leverage and strong cash flows makes Prudent a unique proposition.

Specialty portfolio emerges as a strong growth driver over the years

Sun Pharma is the largest pharma company of India with about 8.2 percent market share in the domestic formulation industry. It also gets a sizeable revenue from its global specialty business which fetches higher margin than the pharma generic business. Key watch for company in coming months is the progress for Specialty pipeline, the US tariffs on pharma products and expansion of domestic field force. 

Goldiam International: Is This the Next Big Winner in the LGD Boom? | Stock of the Day

Goldiam is well poised to ride the increasing consumer preference towards lab grown diamonds (LGD). Goldiam is strengthening export presence by launching new products as well as tapping new geographies. Also, with rapid scale up of LGD retailing business, Goldiam would gain first mover advantage in the domestic market.

IRCTC: A predictable journey at a reasonable price | Stock of The Day

IRCTC has an envious position with monopoly in internet ticketing, catering and packaged drinking water businesses. It’s affordable holiday packages are also quite popular. While internet ticketing is extremely high margin, it is almost fully penetrated and the growth is likely to come from addition of new trains including Vande Bharat that could have a positive rub off on catering and water business as well

RR Kabel: Aims to gain market share and expand retail presence in domestic market | Stock Of The Day

RR Kabel is the fourth largest player in the Indian Wires and Cables(W&C) industry by value (FY24). The company operates 5 manufacturing facilities - 2 for wires and cables and 2 for Fast Moving Electric Goods (FMEG). RR Kabel enjoys a strong brand recall and garners 70-75 percent revenue (highest among listed peers) from the retail focused B2C segment, which should function as a strong lever for sales growth and margin improvements in medium term.

Ami Organics | Growing interest of innovators in this pharma intermediates player| Stock of the Day

Ami Organics gets 79 percent of the revenue comes from pharma space wherein it manufactures intermediates for APIs and NCE (New Chemical Entities). Rest of the revenue comes from chemicals segment. While company’s foray into the lithium-ion batteries and the semiconductor industry value chain is a key watch, ramp-up in CDMO (Contract Development and Manufacturing Organization) contracts is expected to be the key earnings catalyst.

Mas Financial stands out as a conservative lender Caption Mas under the weather | stock of the day

Mas Financial is a lender to the bottom of the pyramid although its book is largely secured and exposure to microfinance is minimal and that too through well-capitalised NBFC partners. Company has decided to slowdown growth to protect its asset quality.#stockoftheday

Stock of the Day: Gabriel India – Poised to Benefit from EV Adoption & Premiumisation

Gabriel India, a leading shock-absorber manufacturer, continues to do well. Our confidence in the company remains strong because of robust demand across various segments, its leadership position, and the emerging opportunities in the sunroof and electric vehicle (EV) sectors.

Cello World | A good bet to play the premiumisation theme | Stock of the Day

With a long operating history & a diverse product portfolio spread across various segments, Cello World has emerged as a household name in the Indian consumer space. Cello is continuously launching new products as well as entering new segments to strengthen presence in the consumer space, which is witnessing increasing shift towards branded and premium products. Enhancing distribution reach & improving sales throughput would aid in strong growth.

Amid the inherent volatility in markets, CDSL is relatively low-risk proxy for capital market growth

Indian equities are on a roll. And it is not just the secondary market that is racing ahead, primary market too is bustling with raft of new issue. The dazzling rise in equities has been accompanied by the addition of new investors and traders and rise in retail trading volumes. Central Depository Services Ltd (CDSL), the only listed depository, benefits from these trends. CDSL’s revenue pool is de-risked by diverse nature of the charges. It enjoys strong financials, high earnings visibility. It has entered into new businesses that lend immense scalability to CDSL’s business model. Being a leading company in secular growth sector and in the absence of suitable and comparable listed peer, CDSL warrants attention.

Stock of The Day: Industry upcycle would continue to aid growth of asset owners like JHL

JHL is amongst the prominent listed players in the premium and luxury hotel segment operating hotels in key Indian cities under the Hyatt brand. Healthy inventory addition plans as well as the industry upcycle would transition it in the next growth leg. Strong balance sheet and healthy cash flow generation would enable it to effectively ride the sustained growth in the industry

HDFC Bank| Why should investors bet on HDFC Bank despite the underperformance ?

HDFC bank, known for its consistency, delivered earnings growth of 30% YoY every quarter for a very long period and that moderated to 20% YoY in the past few years. And precisely for this consistency in the performance across credit cycles, HDFC bank enjoyed the premium valuation. However, the merger has weighed on the HDFC bank’s stock performance. The Street seems to be extrapolating near-term merger hiccups to future years.Given the bank’s track record and execution capabilities, HDFC Bank can positively surprise the Street on earnings growth albeit in the next fiscal which can lead to a valuation re-rating and stock upside. Investors should use the current consolidation in the stock price to accumulate the stock.

Cochin Shipyard | Why is it the right time to check this Defence stock?

This leading public sector defence player is poised for sustained growth, driven by its strong technical expertise, significant order book (Rs 22,000 crore), and expanding capabilities. With a robust balance sheet, improved operational efficiency, and enhanced capacities, the company is well-positioned to capitalize on emerging opportunities in the defence shipbuilding and repairs. Moreover, recent correction provides greater opportunity in the light of valuations. It is trading at 40 times estimated FY26 earnings, which is quite good considering the company has zero debt and has provided strong guidance (20-25% revenue growth in FY25).

Crompton Greaves -Building momentum for growth| Iconic 75-Year-Old Consumer Durables

The company's focus on expanding market share and increasing the proportion of premium products within its fan and lighting portfolios is expected to yield significant results. Additionally, restructuring efforts in the Butterfly business aim to position it as a customer-centric innovative brand. By focusing on Agri and solar pumps, premium ceiling lights, and accessories, and launching innovative BLDC fans, Crompton is well-placed to grow its market share.

Improving Growth Prospects And Lower Valuation To Support Data Pattern Stock | Stock Of The Day

Stock Of The Day: Data Patterns, a key player in the defence electronics sector, is positioned for strong growth after a recent correction in stock price. The company benefits from India's import bans on 780 defence items, creating opportunities to fill supply gaps. With a robust order book of Rs 1000 crore, strong focus on radar, electronic warfare, and government initiatives like Make-1 and Make-2, Data Patterns anticipates securing projects worth Rs 2000-3000 crore in the next 3-4 years. Improved execution and rising EBITDA margins have driven 27% earnings growth. The company expects 20-25% revenue growth and additional Rs 1000 crore in orders for FY25.

Why PI Industries is a value buy now? Stock Of The Day

PI Industries Ltd is a leading player in the global agrochemical CSM (custom synthesis manufacturing) export business. It’s a company with superior execution and a solid business model.

Enhancing network reach and broadening of product portfolio to drive growth | Stock Of The Day

Trent is enhancing distribution reach across its fashion brands. With presence in only limited cities currently, there is huge growth potential. Broadening of product portfolio viz value fashion, ethnic wear as well as fashion related segments like beauty, footwear and a strong loyal customer base would ensure growth momentum for Trent. Improving performance of grocery business would be an additional growth trigger.

Stock Of The Day I Vijaya Diagnostic I Rising Revenue, Reasonable Valuation, Expansion Mode

The diagnostic sector has undergone significant correction post-pandemic peak. But the most impact was due to the entry of new players either from pharma industry, large industry houses or startups, creating pricing pressure for the incumbents. However, businesses with differentiated business models have been able to tackle the challenge. Further, volume growth opportunity remains strong due to the large untapped unorganised market. It is in this context we look at the leading diagnostic chain from South India - Vijaya Diagnostic centre

Stock Of The Day I Triveni Eng I Rising Sugar Prices & Margins, Ethanol Focus, Reasonable Valuation

Triveni Engineering and Industries is one of the largest sugar producers in North India, and runs an engineering businesses. The company is a leading player in the niche high-speed gears segment. Triveni could be a key beneficiary of the improving sugar industry fundamentals and growing industrial activity.

Stock Of The Day: Godrej Consumer Products I Higher Margins I Strong Overseas Performance

GCPL ranks among the largest household insecticides, air care and hair care players in emerging markets of India, Indonesia, and Africa. It is likely to report double-digit growth in INR terms on a consolidated basis for March 23 quarter as compared to 7 percent in March 22 quarter and India business is likely to witness broad-based double-digit growth for March 23 quarter. Watch for more

Stock of the day I Metro Brands I Store & online expansion, acquisition, accessories sales focus

Metro Brands is aggressively expanding its store network to tap the long-term strong demand prospects. The company is on track to achieve the guidance of 260 store openings over the next few years. Metro Brands is looking to premiumise its product portfolio by introducing more premium products. The company is also scaling up the online as well as the accessories business, both of which currently contribute about 10 percent of the overall revenues.

Stock of the day I Hind Aeronautics I Robust order-book, reasonable valuation, capacity expansion

Hindustan Aeronautics a dominant player in the defence aeronautics, enjoying a high economic moat, could be a good long-term story. With the strong orders in its hand and a robust pipeline of orders to be awarded along with its huge capacity expansions, the company is set to deliver higher growth in the coming years.

Stock of the day I Sirca Paints | Revenue growth, stable margins, sales target

Sirca Paints enjoys a strong presence in northern markets with revenue growth of 36% YoY in 9M FY23. Margins remain stable despite volatility in input cost prices and are expected to benefit from the correction in oil prices. The company has been adding 50-60 dealers per month. Currently, the dealer count is pegged around 2000. Sirca Paints is targeting 25-30% sales growth for the next 2-3 years.

Stock Of The Day: Mahanagar Gas | Higher CNG Realization, Improved Margins

MGL will acquire UEPL for a cash consideration of Rs 531 crore. In FY22, UEPL recorded revenues of 89 crores and a net loss of 24 crores. The volume of CNG consumed by UEPL in the first half of FY23 was 6 lac scm per day. It is anticipated that MGL will invest Rs 100-150 crore per year for the next 7-10 years to ramp up volume to 1.1 million square meters per day. As a result of weak demand from Europe, global LNG prices have fallen to $13/mmbtu. ropane prices have gone by 22 percent and that is reviving shift towards Gas by industrial consumers. In Q3, MGL's revenue grew by 7% sequentially, EBITDA margin came down marginally. Above expectation Q3 results were driven by higher CNG realization and margins improvement. Stock is trading at FY24 PE of 11.6 times which is below its long-term average forward multiple.